Great Graphic: Big Companies Domiciled in Small Economies

This Great Graphic is from The Economist. There are several ways to understand it. It may suggest how some small economies can be dominated by a single company, such as Finland's Nokia and Taiwan's Hon Hai It may also draw attention to where a company chooses to be domiciled, locate headquarters, such as Arcelor Mittal. In part, this is a function of the quest for economies of scale and globalization.

Where a company is domiciled is necessary but insufficient information to understand its role in a country's economy. Often much of the value-added work is done elsewhere. The share of the nation's taxes, or employment accounted for by these companies do not appear to be well correlated with revenues as a share GDP.

Great Graphic: Big Companies Domiciled in Small Economies
Reviewed by Marc Chandler
on
August 26, 2012
Rating: 5